Effect on value of power substation and/or high power transmission lines

[tonypbwatlanta]

Greetings. Wondering what the general concensus might be from those who have faced this dillema. 315 acre parcel good developable ground for residential. However, there is an easement for high power transmission lines, and a small power substation located on a portiion of the property. Any input on the "stigma", or any affect, positive or negative, would be greatly appreciated (and much needed) Thanks in advance for your help and consideration to everyone. Tony

 

[Stephen J. Vertin MAI]

Tony:

Welcome to the forum. There was an article written on the subject in the Appraisal Journal in the late 80's early 90's. You could probably get a copy on line at the Appraisal Institute's Lum Library. I have not seen the subject come up lately but there may be a more recent one. The last one I remember indicate a sigma existed.

 

[Jerry Dell]

Some time ago I verified a sale of 45 acres which was purchased for a future subdivison. Tranmission easement land had 25% value of other land.
Subdivison can use this land as open space and increase the lot size adjacent to power line.

 

[appdyn]

Where does the easement run? Diagonally through the tract? Just across a corner? Along the side? I often ask a land planner (or whom ever "draws" the lots for a subdivision plat) how 'your' easement might affect development, and how he/she have handled this issue in the past.

Like someone else posted, the easement land area may permit a higher density on the remaining land. If so (and subject to other market information) the easement may not have any effect at all.

Also, the latest reports I have heard is that residential lots that back to a power line (even a big one) do not sell for less than the other lots. They usually are larger (or deeper) to permit the SFR to be farther away from the line, and many buyers like the larger back yard for their kids. (Even if they glow in the dark

 

[Robert E Keller]

Had a 25 acre parcel bounded by Tranmission lines, SFR devlopers has some reservation, but condo/townhomes had none, infact townhome dev.'s liked the added land from a lease with the power company for walk/trail style ammenities. In Pinellas county a highly populated area just a find of 25 acres was rare anyway, so value was not impacted. I worked on this as a broker and not appraiser.

 

[Stephen J. Vertin MAI]

I found this in the Lum Library. It is an article on the subject matter. If you would like a copy e-mail me at svertin@aol.com. I will send it to you.

Electromagnetic Radiation Field Property Devaluation
From the Appraisal Journal, January 1996

The prelude reads;

The Criscuola v. Power Authority of the State of New York decision by the New York State Court of Appeals seems to provide the means to obtain damages due to diminution of property values as a result of proximity to an electromagnetic radiation field (EMF). This article explores ramifications of the decision and its application to valuation problems.

Please note EMF is argued to come from high power lines.

 

[The Warrior Monk]

Like others said, it depends. Any major subdivision out in my area is going to be clustered. Many times that allows for the developed area to be set away from the reserve area, where the HT wires would likely be.